August 7, 2006 Newark, NJ -- Verizon announced today that it will move ahead with a $1.5-billion investment over the next three years for the construction and deployment of its fiber network in New Jersey. The announcement came after Gov. Jon Corzine signed into law legislation that streamlines the process for obtaining video franchises in the state.
"New Jersey's new law allowing us to offer television service in the state provides all the justification we need to go full speed ahead to bring fiber optics directly to customers - something no other company is doing," asserts Ivan Seidenberg, Verizon's chairman and CEO. "Gov. Corzine and the state Legislature deserve full credit for throwing open the door to television competition in New Jersey and new TV choices for consumers in the state," he adds.
As a result of this deployment, Verizon expects to have its video network available to 3.5 million residents by the end of 2008. The first locations will be opened for sale by the end of this year.
"Gov. Corzine's decision today means New Jersey consumers and businesses are poised to have the nation's most advanced communications network delivered directly to their front door," continues Seidenberg. "We expect it will lead to hundreds of new video-related jobs for New Jersey residents, and result in millions of dollars in savings for consumers."
As part of Verizon's plans, the company made the following announcements:
• Verizon will substantially increase FiOS video availability in New Jersey.
The company plans to invest $1.5 billion in Verizon's fiber network that will bring cable choice and competition quickly to hundreds of municipalities in the state. As Verizon considers deployment of available investment resources throughout its service territory, areas with a clear path to television franchises will be a priority.
• Verizon will add jobs and bring improved services to consumers.
Verizon currently has more than 1,000 technicians building the FTTP network around the state. As a result of New Jersey's streamlined franchise rules, the company expects the accelerated deployment will lead to hundreds of additional jobs in New Jersey. In addition, experts have estimated that competition in the cable TV market is expected to result in more than $200 million a year in consumer savings, as well as more choices and improved services.
• Verizon is building a major video hub office in Freehold.
This high-tech video control center will be the primary facility to transmit all video services in most of the state. The multi-million-dollar center will collect the video feed off the company's national fiber-optic video ring and then blend in local channels (network affiliates, PEG channels, etc.) to complete the overall FiOS TV product within the region.
"Today's announcement will make New Jersey one of the most 'fibered' states in the nation, and we fully expect these new franchise rules will open the door to even more competitors," contends Dennis Bone, president, Verizon New Jersey. "New Jersey is on the brink of a communications revolution. By the end of this year, we are planning to start offering consumers the most exciting change to home entertainment this side of color television."
As part of the governor's approval of the legislation, he issued an executive order directing the State Board of Public Utilities to issue rules concerning the deployment to multiple dwelling units (MDUs).
"Bringing our network to apartments and high-rise buildings is a clear part of our deployment plan," says Bone. "This is a tremendous market for Verizon. We've been serving customers in these types of dwellings for decades. We look forward to working in partnership with the state of New Jersey in ensuring that Verizon is not locked out when we begin negotiating with building owners."
Verizon reports that customer reaction to FiOS has been positive, with broadband subscribers more than doubling in the company's inaugural FiOS market of Keller, Texas, just outside Dallas/Fort Worth.